- Industry & Workforce Analytics
What are we hearing here at Camoin?
Here is what industry executives from sectors within the food and beverage industry have had to say:
- The non-dairy, dairy industry is growing rapidly as consumer demand for alternative products increases. This is creating opportunities for new deals, partnerships, and acquisitions (LOTS of acquisitions).
- While the overall sector is strong and growing, there is a lot of volatility within the sector. For example, a few years ago, soy milk was all the rage and popularized plant-based milks. But, in recent years, almond milk has become the dominant product.
- Many non-dairy cheese producers utilize processes that are similar to traditional cheese-making processes and increasingly, non-dairy cheesemakers are looking for traditional cheesemakers to partner with, learn from, and/or purchase equipment from.
- The edible insect industry – think cricket flower – is increasing as companies work to educate consumers on ecological and health benefits, slowly reducing the ‘ick factor’.
- The COVID-19 pandemic has driven up the cost of labor for food manufacturers by 5-20%.
- Small and mid-sized food and beverage companies looking to grow are primarily looking to grow within their respective regions to retain critical supply chains as they build their brand and market share.
What is the data telling us?
Rising incomes and an increased focus on healthy eating have been driving demand for alternative food and beverage options for years, and COVID-19 accelerated this trend. According to IBISWorld, during the economic downturn, the snack food production industry specifically experienced a 4.3% increase in revenues.
As economic conditions improve the food and beverage production industry is likely to experience a boost from rising disposable incomes driving demand for premium food products. Businesses with innovative, health, or premium products are anticipated to enter the market and remain solo or be acquired by larger existing operators.
Want to know more about this trend?
Here are some additional resources:
- U.S. Plant-Based Retail Market Worth $4.5 Billion, Growing at 5X Total Food Sales
- Cooking Up a Winning Recipe to Capitalize on $74 Billion Plant-Based Food Market
Image Source: Adobe Spark